The Government has been consulting on the introduction of Statutory Debt Repayment Plans that will allow for a certified debt advisor to develop a repayment plan that provides reassurances that debts would be paid, in return for legal protections for the debtor. However, the new STDRps must include protections for letting agents and their landlords so they are not exploited by tenants in rent arrears, warns Propertymark.
Under current proposals, rent debts will be considered ‘discretionary’ due to the risks associated with delaying rent payments, such as the landlord not renewing a tenancy agreement.
In response to the consultation, Propertymark says SDRPs are a positive step but they should only help legitimately struggling tenants to pay their rent and prevent the possibility of rogue tenants delaying already lengthy and expensive court procedures.
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